Quick regulatory approvals will be the key to attract foreign investment in coal mining.
Even an established operator such as Coal India, which produces over 80 per cent of the country’s coal, had suffered huge delays because of the time consuming processes associated with land acquisition, compensation to land losers and environment and forest clearances.
“To attract FDI in the coal mining industry and associated infrastructure, the ease of doing business needs to be enhanced significantly. The rationalisation of regulatory procedures (like land acquisition) will be imperative to eliminate regulatory uncertainties and challenges,” India Ratings and Research, a Fitch group company, said in a report.
